Were you injured in an accident involving a car, motorcycle, commercial truck, or another vehicle? If so, we assume that you have filled an accident claim with your insurance provider. While your claim is pending, you are likely to have many questions about your rights, like should I cancel my policy?
This is a question many people ask when their car is totaled, meaning it can no longer be used. On the other hand, how will canceling my insurance plan affect my claim? Am I breaking the law by trying to save money and canceling my insurance coverage on a car that is beyond repair?
We can assure you that canceling auto insurance after a major accident is completely up to you. However, this is not a decision you should make on a whim, as there are consequences to not having car insurance for any amount of time.
To ensure that you are making the best possible decision for yourself and your loved ones, contact our law firm as soon as possible. We are happy to discuss your situation during a free consultation and help you move forward in a positive direction.
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Can I Cancel my Insurance after a Car Accident?
Technically, yes – you can cancel your policy with your auto insurance company at any time, for any reason. This includes cancelling your policy after an accident, though you should be aware of the terms in your policy documents before making such an important decision. For one thing, you may have to pay cancellation fees, as well as the remaining balance if you pay your premiums in monthly installments. There may be other issues that impact your finances if you cancel your insurance plan, which you should think about before you make a final decision.
Reason to Cancel Your Insurance
It’s important to think about the reasons behind your desire to cut ties with your current insurance company. We already mentioned one reason one earlier in this article – not paying for insurance on a car that is totaled. But even if your car is salvageable, an accident is likely to increase your premiums, regardless of who is at fault. So, it makes sense that you may shop around for a better rate, especially if you did not cause the accident, but your insurance company insists on raising your rates.
Will Cancelling my Policy Affect my Insurance Claim?
With a claim that has yet to be paid, doing something to slow down the process or negate your right to compensation is the last thing you want to do. But we want to assure you that you are not legally obligated to stay with the company until your claim is fully resolved. That means you can go ahead and switch insurance companies while are in the middle of an accident claim.
What Happens to My Claim if I Switch Insurance Companies?
Even if you sign up for a new policy with another company, your old insurance company will continue to handle your existing claim. So, you do not have to worry that your former insurance provider will not honor their obligation to pay you for medical expenses and other damages because you no longer with to do business with them. Whether the accident is still being investigated, or you are trying to negotiate a settlement, your insurance company has a legal duty to handle your claim in a diligent and timely manner.
How to Cancel Your Car Insurance Policy
Please note that the cancellation process must be done formally, according to the terms of your contract with the insurance company. Some people stop paying on the policy once they decide to cancel, but this can have costly consequences, like being reported to the credit agencies for non-payment. Once your credit report shows an account that was canceled due to non-payment, it is likely to result in higher rates when you apply with another insurance company.
Please take the following steps to protect your finances if you wish to cancel your auto insurance policy after an accident:
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Contact the company and let them know of your intention to cancel the existing policy
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Follow all the steps required by your company to process the cancellation
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If applicable, make sure to ask for a refund (if you paid a lump-sum for the yearly insurance premiums)
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Go through the process to report the change in insurance companies to the Department of Motor Vehicles.
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Find a new insurance company.
Please note that finding a new insurance company right away is critical, and the timing is very important. You do not want any lapses in coverage and not having coverage for even a few days puts you at risk of serious legal and financial issue if you get into another accident. Reporting the change to the DMV is another essential step, as failure to do can result in fines and suspension of your car registration.
We can walk you through the car insurance cancellation process from start to finish, along with helping you through any stage of the claims process if you were involved in a car accident.
Normandie Law Firm
Legal advice is the key to a successful accident claim, which is why you should contact our law firm without delay. Along with securing the compensation you deserve, we look out for your long-term interests by helping you with issues, like “Should I cancel my car insurance after an auto accident?’
We know that car accidents take a heavy toll your finances, and that’s why we never ask for payment upfront. All attorneys here at Normandie work on contingency, so the only time we get paid is upon the recovery of your settlement. If we don’t win your case, the Zero Fee Guarantee is there to ensure that you are not responsible for any legal fees.
